What is the fastest way to raise my FICA score?

Question

I have some delinquent stuff on my account from a few years ago. I heard that if its over 4 years than paying it off will not increase my FICA score. Is this true? If so what can I do to significatly improve my score?

Answer 1

I can answer that for you.

Actually it's your "FICO®" score instead of FICA. FICA is what gets taken out of your paycheck for social security and medicare, but that's enough clarification.

As far as the collection accounts, if they're older than 2 years, unless you negotiate a "pay to delete" which is an agreement to make a payment in exchange for removing the account from the report because paying it now isn't going to increase your score, if anything it may lower it even further because it updates the collection with new information from the recent payment. So, I would let them naturally stop reporting after 7½ years.

Here's some ways to improve your score:

1. Pay everything on time

2. Keep balances on all credit cards at or below 30% of the available credit, and the ideal thing would be for them to be paid off completely.

3. Don't start applying for credit. Each time you apply, it creates a "hard inquiry" which can lower your score 3-10 points

4. Again, if you plan on paying collections that are older than 2 years, negotiate a pay to delete, or don't pay them, as simply paying them would not only be a waste of money since it wouldn't raise your score, but it could make matters worse.

Answer 2

I've heard you should contact the credit reporting agency and dispute ALL negative items on your credit report.

If they can't investigate the dispute and prove that you owe the money with 30 days, it goes off of the report.

Almost doesn't seem fair to the lenders but hey, who cares, there ya go.

Answer 3

You just need to give it time and don't change anything.

Don't open new accounts, don't close accounts, just pay your bills on time and keep your existing balances low.  Time will improve your score.

The delinquent reporting will go away after 7 years.